Arkansas employment rules for employers
Last verified Sep 24, 2026 · 4 verified rules · How we verify every rule
General information, not legal advice. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Every rule on this page links to its official source.
Minimum wage
Arkansas minimum wage is $11.00 per hour for employers with 4 or more employees. (Arkansas Minimum Wage Act (U.S. DOL WHD State Minimum Wage Laws table))
What is the minimum wage?$11.00 per hourVerified Sep 24, 2026 · 2 official sources
Arkansas minimum wage is $11.00 per hour for employers with 4 or more employees. (Arkansas Minimum Wage Act (U.S. DOL WHD State Minimum Wage Laws table))
“Arkansas Applicable to employers with 4 or more employees Basic Minimum Rate (per hour): $11.00”
“Effective January 1, 2021, the minimum wage in Arkansas is $11.00 per hour. The Arkansas Minimum Wage Act covers employers with 4 or more employees.”
Used in: How to hire your first employee
Paydays
How often do you have to pay?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: dol.gov.
Used in: How to hire your first employee
Meal breaks
Do adult employees get a meal break?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: dol.gov.
Rest breaks
Do adult employees get paid rest breaks?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: dol.gov.
Final paycheck
If you fire someone, when is the last paycheck due?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: labor.arkansas.gov.
If an employee quits, when is the last paycheck due?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: labor.arkansas.gov.
Final paycheck laws by state · Final paycheck date calculator
Used in: How to fire an employee in your state · Employee no call, no show: what to do · An employee resigned: what to do next
Unused vacation (PTO) at separation
Do you have to pay out unused vacation when someone leaves?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: labor.arkansas.gov.
Used in: How to fire an employee in your state · An employee resigned: what to do next
Paid sick leave
Do you have to give paid sick leave?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: labor.arkansas.gov.
At-will employment
Yes. Arkansas follows at-will employment, with these exceptions (Harper v. Brookshire's Grocery, No. 1:03-cv-01170-HFB (W.D. Ark. 2005), citing Gladden v. Arkansas Children's Hosp., 292 Ark. 130, 728 S.W.2d 501 (1987)):
- Public policy: Recognized (Dixon v. Arkansas Surgical Hospital, No. 4:07-cv-00084-GTE (E.D. Ark. Mar. 25, 2008), quoting Palmer v. Arkansas Council on Economic Educ., 344 Ark. 461, 40 S.W.3d 784 (2001), and Sterling Drug, Inc. v. Oxford, 294 Ark. 239, 743 S.W.2d 380 (1988))
- Implied contract: not verified yet (check the official source)
- Good faith and fair dealing: Not recognized (Harper v. Brookshire's Grocery, No. 1:03-cv-01170-HFB (W.D. Ark. 2005), citing Gladden v. Arkansas Children's Hosp., 292 Ark. 130, 728 S.W.2d 501 (1987))
Public policy exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official pages from the same agency
Arkansas recognizes a limited public policy exception (Sterling Drug v. Oxford): an at-will employee may sue for wrongful discharge if fired in violation of a well-established public policy of the state; it does not protect merely private interests. (Dixon v. Arkansas Surgical Hospital, No. 4:07-cv-00084-GTE (E.D. Ark. Mar. 25, 2008), quoting Palmer v. Arkansas Council on Economic Educ., 344 Ark. 461, 40 S.W.3d 784 (2001), and Sterling Drug, Inc. v. Oxford, 294 Ark. 239, 743 S.W.2d 380 (1988))
“Therefore, we hold that an at-will employee has a cause of action for wrongful discharge if he or she is fired in violation of a well-established public policy of the state.”
“cases in which employees are discharged in violation of the public policy of the state.”
Implied contract exception: recognized?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: govinfo.gov.
Good faith and fair dealing exception: recognized?Not recognizedVerified Sep 24, 2026 · 2 official pages from the same agency
Arkansas courts do not recognize a wrongful discharge claim for breach of an implied covenant of good faith and fair dealing in at-will employment. (Harper v. Brookshire's Grocery, No. 1:03-cv-01170-HFB (W.D. Ark. 2005), citing Gladden v. Arkansas Children's Hosp., 292 Ark. 130, 728 S.W.2d 501 (1987))
“Arkansas is a employment at will state and its courts do not recognize as actionable a claim for breach of an implied covenant of good faith and fair dealing.”
“To the extent that plaintiff attempts to base his claim on Arkansas’ general public policy of good faith and fair dealing, that argument has been expressly rejected.”
Used in: How to write up an employee (the right way, in your state) · How to put an employee on a performance improvement plan · Employee no call, no show: what to do · Insubordination: what counts, and how to handle it
Service letter (reason for termination)
Do you have to give a written reason for the termination on request?Not verified yetCheck the official source
We have not verified this rule for Arkansas yet. Check the official source: labor.arkansas.gov.
Used in: How to write up an employee (the right way, in your state) · How to fire an employee in your state
Separation notice
Do you have to give a separation notice when someone leaves?Yes: Appendix A to Rule 5, Notice to EmployeeVerified Sep 24, 2026 · 2 official sources
Arkansas employers must give each employee, upon separation from employment, the unemployment insurance notice set out in Appendix A to DWS Rule 5 ('Notice to Employee'); the delivery method is at the employer's discretion. Employers must also keep the UI poster posted. (Arkansas Division of Workforce Services Rule 5(A)(2))
“(2) Provide the notice in Appendix A to this Regulation to each employee upon that employee’s separation from employment. The method of delivery of the notice shall be at the employer’s discretion.”
“the proposed amendments will add the requirement for employers to give an employee a copy of a notice, the form of which is set out in Appendix A to Rule 5, upon an employee’s separation from employment.”
Used in: How to fire an employee in your state
Final pay after firing, neighbors
| State | Final pay after firing |
|---|---|
| Arkansas | Not verified |
| Missouri | Not verified |
| Tennessee | Not verified |
| Mississippi | Not verified |
| Louisiana | Not verified |
| Texas | 6 calendar days |
| Oklahoma | Next regular payday |
Only verified rules are shown. "Not verified" means we have not checked that state's rule yet; open its rulebook for the official source.
What an employee costs in Arkansas
Beyond the salary, an employer pays these payroll taxes on each employee. Rates for 2026, from official sources:
- Social Security: 6.2% of wages, up to $184,500 per employee in 2026 (Publication 15).
- Medicare: 1.45% of all wages, with no wage base limit (Topic 751).
- Federal unemployment (FUTA): 6.0% of the first $7,000 of each employee's wages, with a credit of up to 5.4% for state unemployment taxes paid, so usually 0.6% (Topic 759).
- FUTA credit reduction: Arkansas is not on the DOL list for 2025 (final) or 2026 (potential), so the full 5.4% credit is available if state unemployment taxes are paid in full and on time (U.S. DOL, FUTA credit reductions; Topic 759).
- Arkansas unemployment insurance: taxes apply to the first $7,000 of each employee's wages. Rates for experience-rated employers run from 0.10% to 6.00%; the new-employer base rate is 1.8%. Source: U.S. DOL, Significant Provisions of State UI Laws, effective July 2026, page 1. The DOL notes that higher rates may apply by industry and that the table "is not an official interpretation of state UI laws". Find the Arkansas unemployment agency.
A worked example: $40,000 salary
Estimate, before benefits and workers' comp; check with your payroll provider. It assumes a new employer, a full year of wages and the full FUTA credit.
| Tax on a $40,000 salary | Per year |
|---|---|
| Social Security, 6.2% (Topic 751) | $2,480 |
| Medicare, 1.45% (Topic 751) | $580 |
| Federal unemployment (FUTA), 0.6% of the first $7,000 (Topic 759) | $42 |
| Arkansas unemployment insurance, new-employer rate 1.8% of the first $7,000 (DOL, July 2026) | $126 |
| Estimated total employer taxes | $3,228 |
Estimate: $3,228 is about 8.1% on top of the salary. It leaves out health insurance, retirement contributions, workers' compensation, state disability or paid leave programs and any local taxes.
Federal wage enforcement in Arkansas
In FY2021 to FY2025, the U.S. Department of Labor's Wage and Hour Division concluded 575 cases in Arkansas (n = 575), finding $3,446,585 in back wages owed to 6,788 employees (DOL enforcement data). Enforcement data is not a violation rate: it shows where federal investigators looked, and many states handle wage claims through their own agencies. Wage violations by industry.
Changes coming in 2027
We have not found an announced 2027 change for Arkansas employers in official sources yet. All 2027 changes by state.
Changelog
- Sep 24, 2026: first verified, 4 rules.
Questions about Arkansas employer rules
What is the minimum wage in Arkansas?
Arkansas minimum wage is $11.00 per hour for employers with 4 or more employees. (Arkansas Minimum Wage Act (U.S. DOL WHD State Minimum Wage Laws table))
Is Arkansas an at-will state?
Yes. Arkansas follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 2, and 1 is recognized in Arkansas (Harper v. Brookshire's Grocery, No. 1:03-cv-01170-HFB (W.D. Ark. 2005), citing Gladden v. Arkansas Children's Hosp., 292 Ark. 130, 728 S.W.2d 501 (1987)).
Sources (13)
- Arkansas Minimum Wage Act (U.S. DOL WHD State Minimum Wage Laws table)
- Arkansas Department of Labor and Licensing, Minimum Wage
- Harper v. Brookshire's Grocery, No. 1:03-cv-01170-HFB (W.D. Ark. 2005), citing Gladden v. Arkansas Children's Hosp., 292 Ark. 130, 728 S.W.2d 501 (1987)
- Posluns v. Education Management Corp., No. 4:10-cv-01294 (E.D. Ark.), citing Smith v. Southern Starr of Arkansas, 700 F. Supp. 1026 (E.D. Ark. 1988)
- Dixon v. Arkansas Surgical Hospital, No. 4:07-cv-00084-GTE (E.D. Ark. Mar. 25, 2008), quoting Palmer v. Arkansas Council on Economic Educ., 344 Ark. 461, 40 S.W.3d 784 (2001), and Sterling Drug, Inc. v. Oxford, 294 Ark. 239, 743 S.W.2d 380 (1988)
- Arkansas Division of Workforce Services Rule 5(A)(2)
- Administrative Rules Subcommittee of the Arkansas Legislative Council, agenda of August 24, 2021 (DWS Rule 5)
- IRS Publication 15 (2026), Circular E, Employer's Tax Guide
- IRS Topic no. 751, Social Security and Medicare withholding rates
- IRS Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
- U.S. DOL, Employment and Training Administration: FUTA credit reductions
- U.S. DOL, Office of Unemployment Insurance: Significant Provisions of State Unemployment Insurance Laws, effective July 2026
- U.S. Department of Labor: State labor offices
Checked Sep 24, 2026 · How we verify every rule · Report an error